calculate the overheads allocated to production departments a and b from the followi 559072

Calculate the overheads allocated to production departments A and B from the following: There are two service departments X and Y. X renders service to A and B in the ratio 3:2 and Y renders service to A and B in the ratio 9:1. Overhead as per primary overhead distribution is A—Rs 49,800; B—Rs 29,600; X—Rs 15,600; Y—Rs 10,800.

Production departments

Service departments

A

B

C

X

Y

Direct wages (Rs)

7,000

6,000

5,000

1,000

1,000

Direct materials (Rs)

3,000

2,500

2,000

1,500

1,000

Employees (number)

200

150

150

50

50

Electricity (units)

8,000

6,000

6,000

2,000

3,000

Light points (number)

10

15

15

Asset value (Rs)

50,000

30,000

20,000

10,000

10,000

Area occupied (square yards)

800

600

600

200

200

The expenses (in rupees) for the month were as follows:

Stores overheads (Rs)

400

Motive power (Rs)

1,500

Lighting (Rs)

200

Labour welfare (Rs)

3,000

Depreciation (Rs)

6,000

Repairs and maintenance (Rs)

1,200

General overheads (Rs)

1,000

Rent and rates (Rs)

600

Apportion the expenses of X in the ratio 4:3:3 and those of department Y in the proportion of direct wages to departments A, B and C, respectively.

Total

— 18,400

5,190

3,520

2,850

3,650

3,190

Department X4:3:3

— —

1,460

1,095

1,095

( 3,650)

Department Y76:5

— —

1,241

1,063

886

( 3,190)

18,400

7,891

5,678

4,831

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